Economy

It is the social science that studies the economic behavior of individual agentsproduction, exchange, distribution and consumption of goods and services, understood as a means of human need and individual or collective result of thecompany. Other doctrines help to further this study: psychology and philosophyattempt to explain how to determine the objectives, history records the change inobjectives over time, sociology interprets human behavior in a social and political science explains the relationship power to intervene in economic processes.


The purpose of studying economics is the proper distribution of scarce resources to meet human needs. In other words, analyzing the relationship between the resourcesavailable, which are limited in nature and needs, which are absolute, but hierarchical.The object of economics is very broad, encompassing the study and analysis of thefollowing facts: 1
The way in fixing the prices of goods and factors of production such as labor, capitaland land and how they are used to allocate resources.
The behavior of financial markets and how they allocate capital in society.
The consequences of state intervention in society and its influence on market efficiency.
The income distribution and suggests the best methods of helping poverty without affecting economic performance.
The influence of public spending, taxes and state budget deficits in countries' growth.
As business cycles are developed, its causes, fluctuations in unemployment andoutput, as well as measures to improve economic growth in the short and long term.
The flow of international trade and the consequences of erecting barriers to free trade,.
The growth of developing countries.

International trade theories

The new international trade theory ignores the differences between countries in terms of resources and focuses on the decisions of entrepreneurs to present an alternative view of the implications of signing the Free Trade Agreement. The new theoryemphasizes the heterogeneity of firms in the importance of productivity and variousfixed costs incurred by companies to produce for the domestic market or international markets. The new models of international trade predict that large firms are the ones that benefit from trade liberalization such as that in the FTA. In contrast to large enterprises, small businesses suffer the onslaught of foreign competition and often have to further reduce its size or close. The closure of small businesses can havehigh social costs in terms of employment, loss of diversity in the economy andweakening of the basis for the generation of new technologies and renewal of the productive apparatus. He should seek a balance between export promotion andprotection of small business. One suggestion that occurs is particularly seek to reducecosts of access to international markets for small businesses.

The mind map

International Trade: In short, the exchange of any goods or services between twocountries is important because:
Generates income for the country
Contribute to economic development which will generate more employment to the country
Allow the country's innovation and expertise in both the production
Business Economics
The methods of investigation and deduction of International Economics is basicallythe same as in the fundamental economics, that because the agents are showing in their behavior the same basic features, except for some nuances. However, the international economy brings its own concerns as transactions are made ​​betweencountries with different currencies, internal policies and external constraints thatadversely affect trade relations.
International Finance
International finance is an area of knowledge that combines elements of corporate finance and international economics. Finance is the study of cash flows. Studyinternational finance cash flows across national borders. International financial management is the process of making decisions about cash flows presented in thecontext of multinational enterprises.

TYPES OF INVESTMENT

The concept of investment is often synonymous active. More specifically, it refers tofixed assets (the "Fixed Assets ") as long-term investments are kept with the intentionof deriving profit
As explained in 1.6, the assets are characterized by profitability, safety and liquidity.The combination of these three characteristics produce a wide variety of investments.Usually higher yielding investments are also the least liquid and most at risk. In contrast, liquidity and security are closely related concepts.
Performance: Ability to obtain an excess over the amount invested, as much as possible. It is usually measured in annual terms concerning, among other things,because it allows comparison with the cost of financing (interest).
Security: It is a concept otherwise at risk. This is defined as the probability of losing part of the investment (economic risk) or failing to meet payment obligations when due (financial risk). Economic risk is the very concept associated with the assets,while financial liabilities is proper (a measure of the economic risk of our creditors).There is no universal measure of risk. Often used the calculus of probability, eitherapplied to the gain or loss produced by each active, or to their own value.
Liquidity: Ability to transform an asset into cash, with greater immediacy as possible,with as little loss as possible and as safely as possible. There is a measure ofliquidity, but is determined on the basis of the legal nature of the assets. Thus, moneyis the only fully active liquid, although there are plenty of financial instruments (other than those considered "money") that are highly liquid.